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Southern Atlantic Distributors began operations in January 2021 and purchased a delivery truck for $40,000. Southern Atlantic plans to use straight-line depreciation over a four-year expected useful life for financial reporting purposes. For tax purposes, the deduction is 50% of cost in 2021, 30% in 2022, and 20% in 2023. Pretax accounting income for 2021 was $300,000, which includes interest revenue of $40,000 from municipal governmental bonds. The enacted tax rate is 25% Assuming no differences between accounting income and taxable income other than those described above: Required: 1. Complete the following table given below and prepare the journal entry to record income taxes in 2021. 2. What is Southern Atlantic's 2021 net income? Answer is not complete Complete this question by entering your answers in the tabs below. Required 1 Calculation Required 1 GJ Required 2 Complete the following table given below to record income taxes in 2021. (Enter your answers in thousands (i.e., 5,500 should be entered as 5.5). Amounts to be deducted should be indicated with a minus sign.) Tax Rate % Tax $ Recorded as: $ Pretax accounting income 300 40 $ Permanent difference $ 85 $ Income subject to taxation 340 25% Income tax expense $ $ 2.5 Deferred tax liability Temporary difference 10 xX 25% Income taxes $ 87.5 Income taxable in current year 350 25% | payable Southern Atlantic Distributors began operations in January 2021 and purchased a delivery truck for $40,000. Southern Atlantic plans to use straight-line depreciation over a four-year expected useful life for financial reporting purposes. For tax purposes, the deduction is 50% of cost in 2021, 30% in 2022, and 20% in 2023. Pretax accounting income for 2021 was $300,000, which includes interest revenue of $40,000 from municipal governmental bonds. The enacted tax rate is 25% Assuming no differences between accounting income and taxable income other than those described above: Required: 1. Complete the following table given below and prepare the journal entry to record income taxes in 2021 2. What is Southern Atlantic's 2021 net income? Answer is not complete. Complete this question by entering your answers in the tabs below. Required 1 Calculation Required 1 GJ Required 2 Prepare the journal entry to record income taxes in 2021. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field. Enter your answers in thousands (i.e., 5,500 should be entered as 5.5).) No Transaction General Journal Debit Credit 1 Income tax expense 85,000.0 Deferred tax liability 25,000.0 Income taxes payable 87,500.0 Southern Atlantic Distributors began operations in January 2021 and purchased a delivery truck for $40,000. Southern Atlantic plans to use straight-line depreciation over a four-year expected useful life for financial reporting purposes. For tax purposes, the deduction is 50% of cost in 2021, 30% in 2022, and 20% in 2023. Pretax accounting income for 2021 was $300,000, which includes interest revenue of $40,000 from municipal governmental bonds. The enacted tax rate is 25% Assuming no differences between accounting income and taxable income other than those described above: Required: 1. Complete the following table given below and prepare the journal entry to record income taxes in 2021 2. What is Southern Atlantic's 2021 net income? Answer is not complete. Complete this question by entering your answers in the tabs below. Required 1 Calculation Required 1 G Required 2 What is Southern Atlantic's 2021 net income? (Enter your answers in thousands (i.e., 5,500 should be entered as 5.5).) Net income 212,500

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